EURUSD plunges, stocks fall as Italy imposes 40% excess profit tax on banks【August 9, 2023】
August 09, 2023
- Italian Government Announces 40% Excess Profit Tax on Banks, Impact on European Stocks
- Moody’s downgrades 10 U.S. banks, sending U.S. stocks sharply lower
- China’s economic indicators fall short of expectations, AUD temporarily below the milestone of USD 0.65
EURUSD Technical Analysis
Analysis of the EURUSD on a daily basis confirms the awareness of the uptrend line. Although the trend line was temporarily broken due to yesterday’s big drop, the trend line was maintained due to short covering by profit taking. Going forward, the focus will be on whether the uptrend line can be maintained.
If the trend line is broken, a decline to around USD 1.085 is expected.
Day Trading Strategy (Hourly)
Checking the hourly EURUSD chart, the candlestick is now sandwiched between the daily uptrend line and the downtrend line. The fluctuation is gradually decreasing, and there is a strong possibility of a breakout in either direction in the future. It is impossible to predict which direction the breakout will be in at this stage.
As for our trading policy, we understand from the sentiment that a certain number of buy positions have accumulated, so we would like to follow the market with sell positions in the event of a breakout to the downside. However, we intend to trade in the short term.
Support and Resistance Lines
The resistance line to be considered in the future is as follows
1.0963 USD – Pivot Point
EURUSD Sell: 42% Buy: 58%
Today’s Important Economic Indicators
|Economic Indicators and Events||JST (Japan Standard Time)|
|Crude Oil Inventories||23:30|
*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.